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Renewable energy 'boosting M&A in utilities sector'

23 March 2010

A growing number of mergers and acquisitions (M&A) in the power and utilities industry are involving renewable energy firms, a new report has indicated.

The annual review of M&A in the global renewable power sector from PricewaterhouseCoopers (PwC) reveals that renewables accounted for 25 per cent of the industry's total deal value in 2009.

Up from 17 per cent in the previous year, the rise means that renewable power made up $33.4 billion (£22.3 billion) of the $131.1 billion spent on gas and electricity deals last year.

According to the study, hydropower dominated the M&A market in 2009, with five of the ten largest renewable energy deals occurring in this sector.

PwC's European energy leader Mark Hughes noted that private equity groups are now showing "a high level of interest in renewable technology purchases".

However, director Ronan O'Regan warned that the long-term outlook for deal-making in the industry is still uncertain, particularly while financing conditions "remain constrained".

Last week, Reuters reported that Europe's retail sector is preparing for an upsurge in takeover activity as companies begin to target growth and equity markets recover.

Categories: Energy, Manufacturing & Infrastructure


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